Why invest in real estate in Portugal?

Portugal is a country with interesting characteristics.

Ranked 27th country on the OECD Stat Better Life Index - Edition 2016, Portugal is a country offering favorable weather and environmental conditions. Enjoying around 3300 hours of sunshine a year, Portugal is one of the sunniest countries in Europe.
A cosmopolitan and modern country, Portugal enjoys a rich cultural diversity, a high quality health system and very good conditions for the practice of various sports such as sailing, diving, cycling, hiking and golf.
Finally Portugal is a country with a good economic and political stability and compared to other European countries the cost of living is very advantageous.

The tax regime of non-habitual residents in Portugal (RNH)

Since the beginning of 2013, the Portuguese government grants to every retired man who wants to establish his Non-Habitual Residence Tax in Portugal, and who was not fiscal resident in Portugal during the last five years, a tax exemption for a period of 10 years which can be extended!

So those who receive a pension paid in a country with which Portugal has implemented an agreement on double taxation (covering the whole European Union and Switzerland for example), they do not have to pay taxes in their country of origin because they become resident Fiscal Portuguese, and they do not pay either taxes in Portugal because of the special legal exemption established. That's why Portugal has become a very attractive tax havens in the EU!

How to benefit from the RNH?

To benefit from this status, you have to live in Portugal during more than 183 days a year, Or detain a property on December 31st of the concerned year, which suppose that the stay in Portugal will be extended; the demand for this special tax status shall be made at the time of transfer of residence in Portugal, or until March 31 of the following year. In the practice, it means that a retired man who transfers his fiscal résidance in Portugal, will be completely free of tax! This measure, nicknamed " Florida of Europe " by Minister of Finance, is a strong incitement in the purchase of your dream house, an apartment or farm (Quinta) in Portugal, The financing of your purchase is only made with the monthly salary which you save by not paying any more your taxes in your country of origin.

Reduced tax rate for professionals who are engaged in high added value

There is not only the retired people who can benefit from a very advantageous tax regime, but also the professionals who are committed in a strong added value, as the doctors, the engineers, the architects, the psychologists and other people whose appears on a list established by the fiscal authorities, If they obtain the status of Non-Habitual resident, they will benefit then from a rate of tax reduced to 20 %.

Golden Visa

Launched by the Portuguese Government in October 2012 and updated on 30 June 2015, the Golden Visa Program allows foreigners living outside Europe to acquire a residence permit in Portugal following a specific investment and to maintain it for a minimum period of 5 years.
There are three types of investments possible for obtaining the golden visa:

  • The acquisition of a property of at least € 500,000
  • Minimum transfer of 1,000,000 € to a Portuguese bank
  • Creation of at least 10 jobs in Portugal

What are the advantages of the Portuguese Golden Visa program?

  • Live and work in Portugal.
  • Free movement in the Schengen area.
  • The deed of residence may be extended to family members.
  • After the 5th year of maintenance of the golden visa it is possible to apply for permanent residence in Portugal.
  • At the 6th year of residence in Portugal it is possible to initiate a procedure to obtain Portuguese nationality and thus acquire the passport of Portugal.